Can You Settle for More Than Policy Limits in California?
When you are involved in an auto accident in California, the at-fault driver’s insurance company will usually offer you a settlement based on the policy limits of the driver’s insurance policy. However, if your claim exceeds the policy limits, you may be able to settle for more than the policy limits.
In California, the at-fault driver’s insurance company is required to pay the full amount of your damages up to the policy limits. If your damages exceed the policy limits, you may be able to seek additional compensation from the at-fault driver. This is known as a “bad faith” claim.
If your claim exceeds the policy limits, you may seek to ultimately sue the driver at fault for additional damages not covered by the policy limits. Whether you should take this approach rather than settling for the policy limits will depend on whether the at-fault driver has assets from which you could collect a judgment.
In California, the at-fault driver’s insurance company is not allowed to settle with you for more than the policy limits without the at-fault driver’s consent. This means that if you want to settle for more than the policy limits, you will need to negotiate directly with the at-fault driver.
When negotiating with the at-fault driver, it is important to remember that the at-fault driver may not have the financial resources to pay for the additional damages. Therefore, it is important to consider the financial situation of the at-fault driver before attempting to settle for more than the policy limits.
If you are unable to settle with the at-fault driver, you may be able to pursue a bad faith claim against the at-fault driver’s insurance company. In a bad faith claim, you can seek compensation for the additional damages not covered by the policy limits.
In California, you may be able to recover damages for pain and suffering, lost wages, medical expenses, and other damages not covered by the policy limits. In order to pursue a bad faith claim, you must be able to prove that the at-fault driver’s insurance company acted in bad faith by refusing to settle for more than the policy limits.
In conclusion, if your claim exceeds the policy limits, you may be able to settle for more than the policy limits. However, it is important to consider the financial situation of the at-fault driver before attempting to settle for more than the policy limits. If you are unable to settle with the at-fault driver, you may be able to pursue a bad faith claim against the at-fault driver’s insurance company.
